46 pc millennials spend more on brands with loyalty programmes: Study

Global loyalty marketing agency, ICLP – a Collinson Group Company – reveals that the desire for innovative loyalty programmes is high on the agenda for consumers when considering their preferred retailers.

The survey found that consumer interest in loyalty programmes is high since 42 per cent of shoppers stated they would be encouraged to shop more with a brand if it had such a scheme

This is particularly true of millennials, with 46 per cent saying they would be encouraged to spend with a brand that has a loyalty programme.

This figure compares with 39 per cent of those in Generation X, and 40 per cent of baby boomers, demonstrating that while there is plenty of appetite for loyalty programmes, brands must do more in order to continue to engage audiences.

“Retail continues to evolve at a rapid rate, with brands both online and offline battling for loyalty in an increasingly crowded space. Gone are the days when a loyalty card alone would encourage consumers to choose a particular retailer above all others – the stakes are much higher now. Effective loyalty programmes need to recognise and cater to what customers value, such as being greeted by name when entering a store, personalised offers or VIP events, in order to drive brand engagement and devotion,” General manager, ICLP, Anurag Saxena, said.

The survey found that consumer interest in loyalty programmes is high since 42 per cent of shoppers stated they would be encouraged to shop more with a brand if it had such a scheme. Retailers need to look beyond traditional points-based programmes to find ways to inspire higher or more frequent spend from shoppers.

58 per cent of affluent consumers expect offers that are personalised and relevant to them when they walk into a store, showing that many expect retailers to use data insights to create a more valuable, customer-centric relationship

53 per cent of all shoppers would be encouraged to shop more frequently or spend more with a brand if they received discounts on future purchases

42 per cent of Indian shoppers said that they would be more loyal to brands that offer a stylist to advise them on purchases, and 39 per cent claim suggestions based on past purchases drive their loyalty

42 per cent of consumers are likely to spend more in a retail store where they are greeted by name and made to feel like a valued customer

Companies that are able to send receipts via email get more repeat visits from consumers, as this is something 39 per cent of those questioned stated would lead them to shop more frequently with a retailer

Increasingly, consumers will choose retailers that offer money-can’t-buy experiences (16 per cent) or invitations to special VIP events (21 per cent) over those that offer generic, points-based rewards. This shows the need for loyalty programmes that offer unique and exclusive experiences

Saxena further said, “Nowadays, personal, unique rewards are more important as loyalty drivers than price alone. To win in this competitive retail landscape, brands need to focus on creating loyalty programmes that generate insight and enable retailers to entice customers back with relevant offers – encouraging them to spend and shop more frequently. From money-can’t-buy experiences to personal greetings and a strong social media presence, customers want to ensure their hard-earned cash is spent with brands that are prepared to invest in a meaningful and personal relationship.”